Comments
The IT and BPO employees may see 10-12 per cent salary hikes during 2011-12.
The industry, in general, is bracing for this hike in appraisal process currently under way in many companies, Mr Som Mittal, President, Nasscom, told newspersons on the sidelines of Global Captive Conclave 2011 here on Thursday.
About 18.5 per cent growth is expected to be clocked in by the IT and BPO industry in the present financial year and the 16-18 per cent growth is likely in the next fiscal. These would facilitate the salary hikes.
“A related aspect is decline in attrition rate. Now it is down three per cent to 16 per cent. We expect it to come down further,'' he added.
The Nasscom's recruitment projection for 2011-12 is 2.40 lakh. “Almost this is same with the recruitment happened this year. Campus hiring in January 2011 was about 1.20 lakh,” Mr Mittal said. The IT industry continued to be the preferred choice by the youngsters, he claimed.
GROWTH DRIVERS
The expected 16-18 per cent industry growth in dollar terms during 2011-12 would be driven by an improved situation in the US and increased traction in healthcare, utility public sector and media.
“The transaction volumes in BPOs (from the US) may also increase soon,'' the Nasscom President said, adding that the US Fed had also revised its growth projection from 2.9 per cent to 3.5 per cent.
“If this happens, it will make a huge difference,'' he said.
In the financial year 2011, the IT-BPO industry's revenue would touch $75 billion out of which $60 billion would be export revenues.
MAT ON SEZs
The industry is still hoping for roll back on Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) proposed by the Finance Minister in his Budget.
“There should be no MAT on SEZs at least till 2014 as promised by the Government. There should be a continuity of the promise. The debate in Parliament should change this proposal,'' he said.
On the captive companies, he said the captive sector in the country is maturing.
“Last year, 20 new captives were set up in India.
“India has a strong value proposition and leadership status in the captive industry,'' he said.
The size of IT-BPO captives is estimated at $12.3 billion in the financial year 2011 accounting for over 20 per cent of the total services exports revenues, according to the Nasscom data.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.